HP Q1 profit flat as revenue rises

HP Q1 profit flat as revenue rises

One week after firing chairman and chief executive officer (CEO), Carly Fiorina, HP has reported earnings that fell slightly short of Wall Street's expectations, and revenue numbers that surpassed them.

The computer maker's revenue for the quarter, which ended January 31, was $US21.5 billion, up 10 per cent from $US19.5 billion its year-earlier quarter, but profit remained flat. HP reported net earnings of $US943 million for the quarter, up slightly from the $US936 million it reported in 2004.

Earnings per share were $US0.32, up from the year-earlier figure of $US0.30, when calculated using generally accepted accounting principles (GAAP).

There is "work to be done to improve our profitability," said a written statement attributed to Robert Wayman, the company's chief financial officer, who is also serving as interim CEO.

Wall Street had been expecting revenue of just under $US21 billion and earnings per share of $US0.34, according to a survey of analysts by Thomson First Call.

HP's Technology Solutions Group, which sells the company's enterprise hardware, software and services offerings, continued to be a drag on profitability. The business unit's operating profit was $US312 million for the quarter, down from the year-earlier figure of $US365 million.

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